6 Benefits of Fintech Industries
- Written by Daily Bulletin
Fintech, for those new to the business, is the integration of advanced financial technologies to automate and improve the way financial services are delivered.
For example, when consumers buy a product, traditionally they pay with a credit card or by their direct bank account. One aspect of financial technology might be to cut out or eliminate direct payments but rather couple them with micro-loans.
Of course, nobody is suggesting that traditional payment methods are to be totally eliminated, but rather, additional options are made available.
Here are some of the primary benefits of financial technology:
#1. Advanced customer service
Customer service is naturally the support you provide to your customers. And while many companies focus on answering product questions, facilitating changes of address, tracking orders, and the like, there is no greater service than adding greater payment options.
Probably the number one of the largest companies in the world that uses financial technology is an alternative payment company, which initially started as a payment system for an online shopping venue. Today, that has grown into a company that garners over $21 billion dollars worth of revenue annually, or roughly a growth of roughly $2 to $3 billion dollars worth of annual growth and processes roughly 15 billion transactions per year.
While many of those are direct credit card payments, offering alternative credit terms on their accounts for many customers that are better than credit card terms because if you purchase an item of $99 or more, you pay no interest providing you pay the entire balance due within 6 months.
#2. Expansion of service
By offering convenient applications (apps) connections between customers and companies have never been easier.
Need to make a payment on your auto insurance or mortgage? With an app on your smartphone, of which over 85 percent of all Australians own, you can do so with a couple of clicks.
No need to wait online for 30 minutes or more to talk to a customer service agent.
Nowadays, even those who get involved in a minor auto accident can report all the details of the accident to their insurance company and even submit photos of their car damage so that an insurance adjuster does not need to make a personal visit.
Everything is handled by the app, including the body shop estimate provided to the insurance company.
#3. Improved security
Consumers in Australia and throughout the world love the convenience of shopping and conducting transactions online, but at the same time, they are nervous.
Several Australian websites in Australia have had security breaches affecting millions.
Cybersecurity is a given essential to ensuring customers are completely comfortable buying from you or using your app to conduct business.
#4. Cost reduction
A key part of fintech is cost reduction. The more people can transact with apps and use AI chat-boxes, the more profitable as well as responsive a company can be.
Using the previous example of people reporting minor auto accidents using phone applications, for every need an insurance adjuster does not need to make a personal visit to a home or office, an insurance company probably saves at least $80 to $100 by
avoiding a personal visit.
Not only is this a great cost saving for the company, but since around 75 percent of all Australian traffic accidents are fender benders, it's very likely that by using accident reporting technology, that the company can hire junior insurance adjusters to handle the bulk of non-critical accidents, thus sending out the experienced adjusters only for cases that are more critical.
And financial technology savings are increasingly experienced in almost every industry.
#5. Higher rates of approval for your services.
Not everyone has a boatload of cash available to spend on your services. In fact, in a report published in August of this year, roughly 20 percent of Australian families have $1,000 or less in the bank.
The plain fact is, that many people are living paycheck to paycheck and although they may want, and actually need your service, if an alternative to a credit card is not provided, they may look to your competition who does offer an alternative.
Financial Technology companies increasingly are offering a buy now, pay later function.
In fact, many Australians now rely on alternative payment plans to buy their food on a payment plan.
#6. Multiple payment options
Of course, the biggest advantage to Australian firms with financial technology is that smaller companies are now part of the big boy network and offer multiple sources of payment.
The more your company can offer multiple payment options, the better your opportunity to snag a customer.
The bottom line
Financial technology is pushing thousands of companies into a new age of consumer-driven options, and you should definitely consult financial technology firms to help you exploit those opportunities
Daily Bulletin
